Northern Data, a Tether-backed data centre operator, has reportedly sold its Bitcoin mining business, Peak Mining, to three companies run by Tether executives, according to a recent report by the Financial Times. The sale is valued at up to $200 million and involves Highland Group Mining, Appalachian Energy, and an Alberta-based company, all of which have ties to Tether co-founder and chair, Giancarlo Devasini, and its CEO, Paolo Ardoino.

The deal marks the second attempt to sell Peak Mining to a Devasini-controlled company, following a failed deal with Elektron Energy in August. Northern Data initially announced the Peak Mining divestment in November but did not disclose the buyers, as it was not required by German regulators. The sale occurred just before video-sharing platform Rumble, in which Tether holds nearly a 50% stake, agreed to acquire Northern Data.

Web of complex financial ties

Northern Data faces investigation by European prosecutors for suspected tax fraud, and its offices were raided in September. The company also currently has a 610 million euro ($715 million) loan from Tether. As part of the acquisition, Tether will receive half of the loan balance in Rumble stock, with the rest paid in the form of a new loan from Tether to Rumble, secured against Northern Data assets.

Tether has been expanding its interests beyond stablecoins, with a $100 million advertising deal with Rumble and plans to buy $150 million worth of GPU services from it as it delves deeper into Bitcoin mining. The company is also eyeing sports teams, having launched a $1.1 billion bid to acquire the Italian professional soccer club, Juventus Football Club, in December, although the bid was rejected by the club’s owners.

Tether branching out from stablecoins

Tether remains the world’s dominant player in the stablecoin sector, with a 60% market share and $187 billion in circulating supply of USDT. In addition to Bitcoin mining, AI, and video-sharing platforms, the company is exploring new avenues for growth. Tether’s complex web of financial ties and investments has raised questions about its business practices and regulatory compliance.

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Smart Tip for Readers

When evaluating the financial dealings of companies like Tether, it’s essential to consider the complexity of their investments and the potential risks involved, and to consult multiple sources to stay informed about the latest developments in the cryptocurrency and fintech industries.